Note 8 - Earnings Per Share

3 Months Ended

Mar. 29, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

8. Earnings Per Share

In 2013, the company calculated its earnings per share using the two-class method which included an earnings allocation formula that determined earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. Previously, the company’s reported net earnings were reduced by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders for purposes of calculating earnings per share under the two-class method. As of January, 2014, the company no longer has “participating securities” as defined under ASC 260. As such, the company now calculates its earnings per share using the treasury method. All of the previous participating securities that resulted in the company using the two-class method have become fully vested or have otherwise expired.

Under the previous two-class method calculation, the dilutive effect of participating securities was calculated using the more dilutive of the treasury stock or the two-class method. The company previously determined the two-class method to be the more dilutive. As such, the earnings allocated to common stock shareholders in the basic earnings per share calculation was adjusted for the reallocation of undistributed earnings to participating securities to arrive at the earnings allocated to common stock shareholders for calculating the diluted earnings per share.

The following table sets forth the computation of basic and diluted earnings per share under the treasury share method as of March 29, 2014 and the two-class method as of March 30, 2013.

	For the Three Months Ended
(in thousands except per share amounts)	March 29, 2014		March 30, 2013
			(Restated)
Net income as reported	$	25,389	$	11,488
Less: Distributed earnings available to participating securities		—		(9	)
Less: Undistributed earnings available to participating securities		—		(7	)
Numerator for basic earnings per share —
Undistributed and distributed earnings available to common shareholders	$	25,389	$	11,472
Add: Undistributed earnings allocated to participating securities		—		7
Less: Undistributed earnings reallocated to participating securities		—		(6	)
Numerator for diluted earnings per share —
Undistributed and distributed earnings available to common shareholders	$	25,389	$	11,473
Denominator for basic earnings per share —
Weighted-average shares		22,492		22,095
Effect of dilutive securities:
Common stock equivalents		225		271
Denominator for diluted earnings per share —
Adjusted for weighted-average shares & assumed conversions		22,717		22,366
Basic earnings per share	$	1.13	$	0.52
Diluted earnings per share	$	1.12	$	0.51